Bank of Canada Rate Decisions 2026
2026 Bank of Canada rate announcement calendar, current overnight rate 2.25%, prime 4.45%, and what each decision means for variable-rate mortgages.
Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated September 1, 2026
Rate tables are step one
Current overnight rate, 2026 announcement calendar, decision outcomes, and the impact of each BoC move on Canadian mortgage holders. Updated September 1, 2026. September 2026 rate snapshot: overnight 2.25% after the July 15 hold. Next announcement: September 2, 2026.
Overnight Target Rate
2.25%
Held July 15, 2026
Big 6 Prime Rate
4.45%
TD mortgage prime: 4.60%
Next Announcement
Sep 2
2026-09-02 · 9:45 AM ET
Key Takeaways
- • The Bank of Canada's overnight target is 2.25%, held for the 6th consecutive meeting on July 15, 2026. Next announcement: September 2, 2026.
- • The cycle peaked at 5.00% in July 2023; the Bank cut 9 times between June 2024 and October 2025 to reach today's level.
- • There are 8 fixed announcement dates in 2026, all at 9:45 AM ET. Four are accompanied by the Monetary Policy Report (MPR).
- • Big 6 prime rate is 4.45%, down from a peak of 7.20% in late 2023.
- • Source: Bank of Canada key interest rate.
2026 Bank of Canada Announcement Calendar
The Bank of Canada maintains a pre-set schedule of eight fixed announcement dates per year, all at 9:45 AM Eastern Time. Four of the eight dates are accompanied by the quarterly Monetary Policy Report (MPR) and a press conference with the Governor and Senior Deputy Governor.
| Date | Type | Outcome | Overnight Target |
|---|---|---|---|
| January 28, 2026 | Rate decision + MPR | Held | 2.25% |
| March 18, 2026 | Rate decision | Held | 2.25% |
| April 29, 2026 | Rate decision + MPR | Held | 2.25% |
| June 10, 2026 | Rate decision | Held (5th consecutive) | 2.25% |
| July 15, 2026 | Rate decision + MPR | Held (6th consecutive) | 2.25% |
| September 2, 2026 | Rate decision | Upcoming | — |
| October 28, 2026 | Rate decision + MPR | Scheduled | — |
| December 9, 2026 | Rate decision | Scheduled | — |
All announcements at 9:45 AM Eastern Time. Source: Bank of Canada.
The Recent Rate Cycle: Peak to 2.25%
The overnight rate peaked at 5.00% in July 2023 after the fastest tightening cycle in a generation — 475 basis points of hikes in just 16 months. The Bank held at 5.00% for nearly a year to let the cumulative tightening work through the economy. Once inflation showed convincing progress back toward the 2% target, the Bank began cutting in June 2024.
| Decision Date | Move | New Overnight Rate | Big 6 Prime |
|---|---|---|---|
| July 2023 | +25 bps (peak) | 5.00% | 7.20% |
| June 5, 2024 | −25 bps (first cut) | 4.75% | 6.95% |
| July 24, 2024 | −25 bps | 4.50% | 6.70% |
| September 4, 2024 | −25 bps | 4.25% | 6.45% |
| October 23, 2024 | −50 bps | 3.75% | 5.95% |
| December 11, 2024 | −50 bps | 3.25% | 5.45% |
| Jan–June 2025 | Multiple cuts (−25 bps each) | Trended lower | Trended lower |
| October 2025 | −25 bps (9th cut) | 2.25% | 4.45% |
| December 2025 | Held | 2.25% | 4.45% |
| January 28, 2026 | Held | 2.25% | 4.45% |
| March 18, 2026 | Held (3rd consecutive) | 2.25% | 4.45% |
| June 10, 2026 | Held (5th consecutive) | 2.25% | 4.45% |
| July 15, 2026 | Held (6th consecutive) | 2.25% | 4.45% |
Nine cuts totaling 275 basis points between June 2024 and October 2025. Source: Bank of Canada.
What Each Decision Means for Variable-Rate Mortgages
Adjustable-Rate Mortgages (ARMs)
Like Scotiabank's standard variable and most monoline variables. Your payment changes with each prime move.
- Rate cut: payment drops immediately
- Rate hold: no change to your payment
- Rate hike: payment rises immediately
Fixed-Payment VRMs
Big 6 default (except Scotia). Payment stays constant; principal portion adjusts.
- Rate cut: more of payment goes to principal
- Rate hold: no change
- Rate hike: more goes to interest — risk of trigger rate
What a Hold Means in Practice
The Bank of Canada's 6th consecutive hold at 2.25% on July 15, 2026 signals that the easing cycle is likely complete and the Bank is in a neutral, wait-and-see stance. For borrowers, this means:
- Variable-rate borrowers have pricing stability — no surprises on payment or principal allocation.
- Fixed-rate shoppers may see gradual movement in 5-year fixed rates tied to how bond markets reprice the forward rate path. Current 5-year Canada bond yields around 2.80–3.00% anchor fixed mortgage rates near 4.19–4.29% (uninsured broker-channel).
- Renewing borrowers face a stable, predictable environment — a good time to shop and lock in rates with 120-day holds.
Renewing in This Rate Environment
Anyone renewing in 2026 is walking into a dramatically different rate landscape than they originated in. If you signed a 5-year fixed in 2021 at 2.00–2.50%, you're renewing into a 4.00%+ world. If you signed a variable at prime minus in 2021, you rode prime up to 7.20% and back down to 4.45%. The path forward for you depends on your current term structure, balance, and cash flow. See our rate forecast and fixed vs. variable guide for strategy.
Frequently Asked Questions
What is the Bank of Canada's current overnight rate (September 2026)?
As of the July 15, 2026 decision, the Bank of Canada's overnight target rate is 2.25%. The Bank Rate (the rate charged to commercial banks for overnight borrowing) is 2.50%, and the deposit rate paid on settlement balances is 2.20%. The Bank held at 2.25% on July 15, 2026 — its 6th consecutive hold.
When is the next Bank of Canada rate announcement?
The next scheduled fixed announcement date is September 2, 2026 (2026-09-02), at 9:45 AM ET. There are eight fixed announcement dates per year; the remaining 2026 dates are September 2, October 28 (MPR), and December 9.
How do Bank of Canada rate decisions affect my variable-rate mortgage?
Each decision directly moves the prime rate at Canadian lenders. A 25 basis point cut (0.25%) lowers prime by the same amount, which flows into variable-rate mortgages. For adjustable-rate mortgages (ARMs, like Scotiabank's standard variable), your payment changes with every move. For fixed-payment VRMs, your payment stays constant but more (on a cut) or less (on a hike) of it goes to principal.
Why has the Bank of Canada been holding at 2.25%?
After cutting 9 times between June 2024 and October 2025 to bring rates down from a 5.00% peak, the Bank reached what it considers the neutral range — a rate that neither stimulates nor restrains the economy. With inflation having moved up on higher oil prices but expected to ease back to the 2% target in 2027, the Bank has held at 2.25% for six consecutive meetings (December 10, 2025, then January 28, March 18, April 29, June 10, and July 15, 2026) while it evaluates incoming data and signals a wait-and-see approach.
Do Bank of Canada rate decisions affect fixed mortgage rates?
Indirectly. Fixed mortgage rates track Government of Canada bond yields, which respond to expectations about the future path of Bank of Canada policy. A rate cut that was anticipated by markets may have little effect on bond yields (and therefore fixed mortgage rates), while a surprise move can shift the whole yield curve. Current 5-year fixed rates sit around 4.09% at the broker channel; 2- and 3-year insured samples are under 4%.
What was the peak Bank of Canada rate in the recent cycle?
The overnight target peaked at 5.00% in July 2023, where it was held until June 2024. This was the highest rate in over 20 years and followed the fastest tightening cycle in a generation — rates rose from 0.25% in March 2022 to 5.00% in just 16 months. The Bank has since cut nine times to today's 2.25%.
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